Climate Change in the 2014-2020 Cohesion Policy: the way ahead? Dr Keti Medarova-Bergstrom Policy Analyst Environmental Governance Programme Monitoring Committee OP Environment 2007-2013 5 December 2011, Pravetz
Institute for European Environmental Policy (IEEP) • IEEP is an independent research organisation concerned with policies affecting the environment in Europe and beyond • Research and consultancy on the development, implementation and evaluation of environmental and environment-related policies in Europe • Policy advise and intelligence • Capacity-building • Interdisciplinary staff including lawyers and natural and social scientists • Key research areas : • Governance (including the reform and greening of EU budget and related funding instruments) • Agriculture and land management • Biodiversity • Climate change and energy • Resources use, waste and chemicals • Water, marine and fisheries
Outline of presentation • What role of EU Cohesion Policy for tackling climate change? • EU policy context • Mainstreaming – interventions and tools • Concluding remarks and next steps
Aggregate impact of climate change • Combined physical, social, economic, environmental and cultural factors • Some hot spots in Bulgaria • Particularly due to expected negative impacts on tourism and agriculture • Significant impacts on environment, e.g. soil erosion Source: ESPON 2011
Response capacity to climate change • Response capacity includes: � Mitigation � Adaptation • Response capacity integrates: � Availability and penetration of new technologies (technology and infrastructure) � Willingness and ability of society to change (knowledge and awareness, institutions, economic resources) • Bulgaria is a country with ‘low adaptive capacity – low mitigative capacity’
Potential vulnerability to climate change Climate change will affect regional development and vice versa Climate change is expected to deepen existing socio-economic imbalances between core- periphery
What role for Cohesion Policy? 1) Cohesion Policy seeks to address economic, social and territorial disparities • Climate change impacts are expected to be territorially differentiated • Expected to exacerbate further economic disparities due to losses in key economic sectors • Climate change investments as economic drivers 2) Solidarity with Member States to catch up with EU standards • Help Member States meet EU’s 20/20/20 climate and energy targets • Help Member States adapt to climate change
Outline of presentation • What role of EU Cohesion Policy for tackling climate change? • EU policy context • Mainstreaming – interventions and tools • Concluding remarks and next steps
EU strategic objectives and climate change • Europe 2020 Strategy • Goals: smart, sustainable and inclusive growth • Headline targets: inter alia 20-20-20 climate and energy targets • Resource Efficiency Flagship Initiative • Transition to low-carbon and resource efficient economy • Cohesion Policy and sustainable growth (COM(2011)17, 26.1.2011 • 2050 Roadmap to a low carbon economy • Reducing domestic emissions by 80 to 95% • Additional €270 billion or 1.5% of its GDP annually
Mainstreaming climate change in EU budget EU Budget Review COM, October 2010 • Re-prioritisation of goals and needs inside policies like research, cohesion , agriculture and rural development • Underpinned by clear political ‘earmarking’ (allocating a fixed amount of financing for these objectives) • Linked to a cross-cutting requirement for reporting of the types and amounts of expenditure made 2014-2020 EU Multi-annual Financial Framework COM, June 11 • Contribute to low carbon, resource efficient and climate resilient economy • At least 20% of the EU budget to be dedicated to climate change under cohesion , research and innovation, agriculture and external aid • Focus on promoting synergies, consistency and cost-efficiency in spending
Mainstreaming climate change in Cohesion Policy (1) • Climate change mitigation, adaptation and risk prevention should be integrated throughout the programme cycle • Reinforced strategic orientation � Common Strategic Framework • Thematic concentration � Menu of 11 thematic objectives o Shift towards low-carbon economy in all sectors o Climate change adaptation, risk prevention and management � Earmarking (relative share of allocations dedicated to specific measure) o 20% of ERDF allocations to developed and transition regions-> EE&RES o 6% of ERDF allocations to less developed regions (Bulgaria) ->EE&RES o 5% of ERDF allocations -> sustainable urban development
Mainstreaming climate change in Cohesion Policy (2) • Ex-ante conditionality – EE, RES, risk assessments, institutional capacity for SEA/EIA, result indicators • Cross-cutting obligation to track expenditure � Based on Rio markers methodology • Performance framework � Priority, targets (for 2022) and milestones (for 2016 and 2018) � 2017 and 2019 performance reviews � Performance incentives (5% reserve and/or suspend) • Major projects � Take into account mitigation, adaptation and resilience
Outline of presentation • What role of EU Cohesion Policy for tackling climate change? • EU policy context • Mainstreaming – interventions and tools • Concluding remarks and next steps
Inter-linkages: mitigation and adaptation Action Action Adapted from ESPON 2011
Vertical mainstreaming - interventions • Mitigation • Energy savings • Renewable energy • Smart grids, transmission networks • Low carbon transport systems • Eco-innovation and research • Low-carbon urban development • Adaptation • Grey (man-made infrastructure) • Green (eco-system based) • Knowledge, institutional capacity and governance • Technical assistance, maps, studies, evaluation, external experts • Training, skills, exchange of good practice • Cross-border and macro regional actions
Recommendations • Climate change is cross-cutting issue -> respective measures integrated under different sectoral and regional development programmes • Ensure coordination and complementarity of actions • Scale up funding for ‘win-win’ solutions • Economic : Efficiency of production processes and competitiveness • Social : Energy poverty • Environmental : Resilience of ecosystems • Shift funding from more carbon intensive to more climate friendly solutions (roads->rail) • Avoid ‘maladaptation’ and/or controversial practices (e.g. RES in sensitive ecosystems)
Horizontal mainstreaming - tools Strategies and roadmaps Regulatory framework Mid-term evaluations Common Strategic Framework Independent ex-post evaluations Objectives, targets, Performance reserve milestones Possibility of suspension Priority interventions Allocating sufficient funds SEA Programme Carbon screening cycle Inter-sectoral WG Call for proposals Project selection criteria EIA, carbon assessment Modulating co-financing rates Green public procurement Tracking methodology Result indicators Climate proofing tools Sustainability managers Inter-institutional Advice to beneficiaries monitoring committees
Recommendations • Mainstreaming will deliver only if commitment and institutional capacity is ensured at national/regional levels • Action beyond 2020 • Earlier action, more cost-effective results • Avoid technological lock-in effect of carbon intensive infrastructures • Absorption is key! • Evaluation is important – risks, trade-offs, synergies – understanding these will help managing them • Transparency of spending and achievement of results • Working closely with all stakeholders, even the critical ones • Public awareness gives political credibility
Outline of presentation • What role of EU Cohesion Policy for tackling climate change? • EU policy context • Mainstreaming – interventions and tools • Concluding remarks and next steps
Next steps We are here We are here now! now!
Concluding remarks • Generally, difficult political context of austerity measures and debt crisis • Member States need to be smart about their expenditure planning • Turning ‘costs’ to ‘investments’ – tapping potential / exploiting win- wins • Sometimes conflicting EU objectives (e.g. TEN-T and climate) • Improve alignment and coordination with other national strategic frameworks and EU funding instruments (e.g. ESF, LIFE+, etc.) • Building on existing knowledge (Rio Conventions project) • Use EU funds to leverage additional private financing through innovative financial instruments – JESSICA + new opportunities post- 2013 • Balance measures with the need for simplification
Workshop on climate proofing Cohesion & CAP • IEEP leads a project for DG CLIMA ‘Climate proofing Cohesion Policy and CAP’ � Expert workshop, early spring 2012, Budapest � Final workshop, June 2012, Brussels
Thank you! Questions? Contact: Kmedarova@ieep.eu London Office Brussels Office 15 Queen Anne's Gate Quai au Foin, 55 London Brussles 1000 Tel: +44 (0) 20 7799 2244 Tel: +32 (0) 2738 7482 Fax: +44 (0) 20 7799 2600 Fax: +32 (0) 2732 4004 For more information about IEEP’s work on greening the post-2013 EU budget and Cohesion Policy, please visit: www.ieep.eu
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